Nearly $1 Billion Was Invested In Space Startups In 1Q2018, New Report Says

The SpaceX Falcon Heavy launches from Pad 39A at the Kennedy Space Center in Florida, on February 6, 2018 (JIM WATSON/AFP/Getty Images)

Private space companies raised nearly a billion dollars in equity in the first quarter of 2018, according to a new report from venture capital firm Space Angels. There were 20 completed deals between January and March, totaling $975,799,660.

SpaceX received the bulk of this investment, raising $500 million in a financing round led by Fidelity, according to TechCrunch. The investment is not publicly confirmed by either company, and a search of SEC filings did not turn up evidence of the financing round. That said, multiple sources have told Forbes that this report is accurate.

1Q2018 space startup investment by sectorSpace Angels

Though not as substantial, other notable deals highlight the growing attraction of investors to satellite startups. Over $250 million was invested in satellite startups, including a $13.5 million investment Series A in Astranis and a $150 million Series B for Spaceflight Industries. Launch companies continue to dominate the investment scene, though, receiving 72% of the total investment dollars last quarter.

"This quarter, the average investment in Satellites is $21 million," the report says. "While the average investment for Launch is $117 million."

The number of space startups attracting investment is growing, too. Of the 20 deals that Space Angels tracked for 1Q2018, 11 of them were early-stage investments, totaling about $88 million. But there are maturing companies as well - about 30% of the deals last quarter were Series B or C rounds, according to the report. "Up 10% from a year ago."

Cumulative exitsSpace Angels

Though launch companies may dominate the investments, the report notes that it's satellite companies that dominate exits - largely through acquisitions.

"This is an established market with many cash-rich incumbents looking to outsource innovation to Space ventures," it reads.

That said, the biggest single exit in the quarter was the $1.15 purchase of Tencate Advanced Composites, which makes materials for satellite and launch vehicles. The Dutch company was acquired by Tokyo-based carbon fiber manufacturer Toray Industries in March.

Space startup investment since 2009Space Angels

Finally, the report also highlights the growing investment in space startups over the past decade. Cumulatively, the report notes that $14.4 billion has been invested in the industry since 2009. Not surprisingly for a venture capital firm that invests in space startups, it's also confident that such companies are a good value for investors.

"Strong fundamentals, such as revenue growth and technology demonstrations, have us extremely optimistic about the continued growth of the industry," the report notes. "Being driven by the rise of commercial manned space flight, implementation of debris monitoring and mitigation, and the demonstration of in-space manufacturing."